The cryptocurrency market is brimming with optimism fueled by a combination of technical indicators, increasing adoption, and regulatory developments. However, amidst the bullish sentiment, a shadow lurks in the form of upcoming token unlock events for three specific cryptocurrencies, including the ARB coin. These lock-ups could trigger significant selling next week, and investors are advised to proceed with caution.
Why should one stay away from ARB coin, APT and AEVO?
Finbold analysts recommend staying away from 3 altcoins, including the upcoming ARB coin. Because they expect great volatility. The culprit behind this potential volatility is a massive token unlock event worth over $1.4 billion. This dwarfs the typical weekly gap locks commonly seen in the crypto space. Financial data provider TokenUnlocks.app has provided this important risk management insight to crypto investors driving upcoming market moves.
While concerns about these lockdowns remain, the overall sentiment is bullish. Differences in various technical indicators for most cryptocurrencies point to positive opportunities for smart investors. However, focusing on tokens that experience significant token emission leaves investors facing potentially missed opportunities. This requires comprehensive analysis and strategic planning.
Three cryptocurrencies to avoid
- Aevo (AEVO): Get ready to unlock a massive 827.6 million AEVO tokens worth $1.02 billion on May 15. This represents one of the largest unlocks ever recorded; a staggering 8 times the current circulating supply of 110 million tokens. Immediate results? Aevo’s project will witness brutal inflation of 752.4% in a single day. Also making the situation worse, the project is scheduled to receive $414 million worth of tokens from the DAO treasury, followed by $264.5 million allocated to the team and $212.75 million to the first private sale investors.
- Aptos (APT): While Aevo takes the inflation crown, Aptos is not far behind. Today, May 12, shows that 11.31 million APT tokens have been unlocked, which is equivalent to $94.55 million and represents 2.6% of the total market cap. Beneficiaries include the Aptos Foundation, community members, key contributors and investors. This significant token influx could potentially trigger a price correction.
- Arbitrum (ARB): Completing the list, Arbitrum is preparing for a 3.5% supply inflation on May 16. The project will unlock $92.44 million worth of tokens. The team, the “future team” and advisors will receive a total of $56 million worth of ARBs, while investors will gain access to the remaining $36.44 million.
Unlocks may not lower the price
While this information suggests there is potential for a price drop next week due to token unlocks, it is crucial to remember the inherent unpredictability of the cryptocurrency market. Positive price movements can occur even in adverse economic conditions. Therefore, the decision to avoid trading these cryptocurrencies should be part of a comprehensive risk management strategy and not an absolute guarantee of loss.
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